Thursday, 5 February 2026

Financial squeeze puts council on course to overspend its budget unless savings can be found

 

FINANCIAL pressures are continuing to bear down on North East Lincolnshire Council.

Unless savings can be found within the next three months, the authority is on course to overspend its annual budget by some £700,000.

An update on NELC's financial position states: "This reflects the ongoing complex social environment in which we operate.  

"Social care cost pressures continue significantly to affect the overall financial forecast. 

"In Children's Services, notwithstanding the continued positive transformation, key challenges persist around education transport and high-cost out-of-area placements. 

"Furthermore, Adult Social Care is experiencing rising demand for long-term support placements, as well as short-stay and support at home care packages." 

The report continues: "The council continues to face financial pressures in relation to reclaiming full housing benefit subsidies from accommodation providers that do not meet Department of Work and Pensionscriteria for full cost recovery, primarily driven by a rise in unregistered providers." 

Like all local authorities, NELC also faces pay and inflationary pressures.

Its various departments are continually being urged to "monitor budgets to ensure both effective service delivery and financial sustainability".   

In addition, the council's pipeline of ambitious redevelopment projects is said to be "under ongoing review"  to ensure they "reflect current priorities and remain viable".

The report notes that, nine months into the financial year, 79.3 per cent of council tax has been collected. This is almost exactly as for the same period last year.


No comments:

Post a Comment